Porter’s 5 Forces: Retail 2021

Who has retail power?

Porter’s 5 Forces model helps to explain market influences as retail undergoes tremendous upheaval.

To manage fierce competition, companies can boost their bargaining power if they:

  • Differentiate their offerings
  • Reflect in-demand consumer trends
  • Invest in e-commerce for omnichannel agility

Also, as tech-driven supply chains grow in power, companies are establishing strategic partnerships to delight consumers with convenience and quality.

UPDATE: August 30, 2021


Amid market volatility, power continues to shift across global retail players.


This piece from March can be amended with market factors growing in influence like:


To increase supply chain control and access to products, Walmart chartered ships and Canadian Tire invested in a shipping port


Brands are investing in digital ads for marketing muscle as e-commerce gets more crowded


TikTok deserves a mention, as tech giants desire a piece of the e-commerce action


As workers embrace the Great Resignation, Walmart and Target invest in employees’ college degrees to navigate the labor shortage



Which force do you think is most powerful in retail today?

2021 Retail Strategy Trends
2021 Retail PEST Analysis

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